- David Gianatasio

BOSTON Strength in emerging markets helped propel WPP Group to a 14 percent rise in first-half net profit to slightly more than $390 million, the holding company said today.

First-half revenue also rose 14 percent to roughly $6.2 billion. In constant currency terms, the improvement was 8 percent. On a like-for-like basis, the gain was 4.5 percent.

In general, the company's performance met or exceeded most analysts' projections.

CLICK HERE FOR WPP'S COMPLETE FIRST-HALF RESULTS.

Despite the overall positive news and the expectation that 2008 would continue apace with ad spending in the U.S. presidential election a key driver, WPP warned that 2009 could prove far more challenging, especially as growth in China -- an important market for the company -- could see a post-Olympics slowdown.

"The prospects for 2009 remain less certain, particularly if the United States and Western European economies continue to be impacted by the financial crisis and commodity price increases," WPP said in a statement. "In addition, the new U.S. president will have to wrestle with twin fiscal and budget deficits in early 2009. And post-Olympics, Chinese growth may slow due to inflationary (particularly food price) concerns and the impact that a weakening U.S. economy has on the rest of the world."

That said, the company added "in mid-2009 the financial markets may start to rebound and 2010, in the real world, continues to look better."

WPP threw a significant wild card into the mix when it made a formal bid for research giant Taylor Nelson Sofres, which it hopes to merge with its Kantar market research division. The offer values TNS at slightly more than $2.28 billion, based on the current rate of exchange. WPP set an Aug. 29 deadline for TNS shareholders to accept the offer, which is structured as a cash and stock play.

In the first half, WPP's revenue in Asia, Latin America, Africa and the Middle East rose more than 25 percent. Continental Europe grew 20 percent. Growth in North America was 7 percent. In the U.K., the gain was 4.5 percent.

All of the company's business sectors enjoyed double-digit first-half spikes. Branding, healthcare and specialty operations led the way with 20 percent improvement, followed by public relations and public affairs (up 14 percent), consulting (up 13 percent) and traditional advertising (up 11.5 percent).

WPP's holdings include Ogilvy & Mather, JWT, MindShare, MediaCom and Mediaedge:cia, among many others.